Wells Fargo Thinks Gold Market Is A “Bubble Poised To Burst”

“As with all bubbles, we know that we run the risk that our view may turn out to be wrong (’early’ would be our preferred euphemism) in the short run; however, we believe that we will be proven right in the long run…

With very little warning, the bottom can drop out on gold prices very quickly. For example, during six short months in 2008, gold lost more than 30 percent of its value. In the 1980s, in a little more than two years, the price of gold dropped approximately 65 percent. When fear subsides, inflation doesn’t skyrocket, and everything begins to return to ‘normal,’ demand for gold can fade away quickly.”